71.

This allows a company to provide a monetary value for items that they have in their inventory.

• inventory valuation
• periodic inventory system
• perpetual inventory system
• cost flow assumption method

72.

If a business owner has a significant amount of receivables sitting on the books, but needs to raise cash before those receivables become due, the owner can do which of the following?

• Sell the receivables to a third party for more than the receivables are worth.
• Call in the receivables early, that is, insist that her customers pay their accounts before they have come due.
• Sell the receivables to a third party at a discount.
• There is nothing that the owner can do, but wait until the receivables are paid.

73.

Todd's Hardware is building an accounting system and is having a difficult time keeping accurate records of how much it has in inventory. Which kind of system would be BEST to implement?

Single-entry

Periodic

Perpetual

Double-entry

74.

Highly leveraged means

• that the company has taken on too many loans and is in too much debt.
• that the company has more than enough assets to finance expansion with equity.
• that the company has used its assets to secure more loans.
• that the company has more than enough assets to cover its debts.

75.

The key purpose of the trial balance is

• to ensure that all asset accounts have a debit balance, that all liability accounts have a credit balance, and that all equity accounts have a credit balance.
• to ensure that all asset accounts have a credit balance, that all liability accounts have a credit balance, and that all equity accounts have a debit balance.
• to check the accuracy of the mathematical calculations made to each account balance as a result of journal entries.
• to ensure that for every transaction that occurs, a credit and a debit has been recorded in two separate accounts.